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Answers (6)
Best Answer
- Dan, "the_country_hick"
- Contributions:4699
A short sale is legally safer than buying a foreclosure now. On a foreclosure the bank may not have foreclosed legally and that could create future problems for a buyer.
With a short sale the seller signs off along with the bank so they can not claim they lost the house illegally.
Short sales can take an exceptionally long time to get any answer in response to your offer. I keep reading that BofA is among the slowest although that could have changed. If you do not mind waiting many months only to be told no a short sale is ok. If you do not like waiting potentially 10 months (or longer) to know if you can buy the property or not I would look for a normal sale instead.
Yes, that 10 month wait has really happened. Sometimes a short sale is almost complete when it turns into a foreclosure and you lose out. It appears at times that the different parts of a bank do not communicate with each other. Sometimes a seller does not really want to sell so they do not sign off. A lot of things can go wrong, but having a realtor who deals with these and understands the process well can be a big help to you.
With a short sale the seller signs off along with the bank so they can not claim they lost the house illegally.
Short sales can take an exceptionally long time to get any answer in response to your offer. I keep reading that BofA is among the slowest although that could have changed. If you do not mind waiting many months only to be told no a short sale is ok. If you do not like waiting potentially 10 months (or longer) to know if you can buy the property or not I would look for a normal sale instead.
Yes, that 10 month wait has really happened. Sometimes a short sale is almost complete when it turns into a foreclosure and you lose out. It appears at times that the different parts of a bank do not communicate with each other. Sometimes a seller does not really want to sell so they do not sign off. A lot of things can go wrong, but having a realtor who deals with these and understands the process well can be a big help to you.
- Tom Fonseca, "tomfonsecarealestate"
- Contributions:370
Safe? If you mean will you receive clear title. You will receive clear title, the title insurance policy is what makes homes "safe" in regards to title issues.
Safe? If you mean structually - you still have the right to inspect the home. As-is sales generally have a 7 -10 inspection period. You can hire inspectors for mold, lead paint, chinese drywall,air quality, roof, termites, and generally condition of the property.
Safe? If you mean will the deal actually close and in a timely manner, best thing to do is use only a Certified Short Sale Agent or a Certified Distressed Property Expert to represent you and better yet if the listing agent holds those designations and better yet if the listing agent uses a title co that negotiates short sales so that you are getting the short sale handeled by people that close 20+ short sales a month.
Safe? If you mean structually - you still have the right to inspect the home. As-is sales generally have a 7 -10 inspection period. You can hire inspectors for mold, lead paint, chinese drywall,air quality, roof, termites, and generally condition of the property.
Safe? If you mean will the deal actually close and in a timely manner, best thing to do is use only a Certified Short Sale Agent or a Certified Distressed Property Expert to represent you and better yet if the listing agent holds those designations and better yet if the listing agent uses a title co that negotiates short sales so that you are getting the short sale handeled by people that close 20+ short sales a month.
- Celia Butler Home Loan Diva, "At Academy Mortgage"
- Contributions:359
One of the biggest secrets is why sometimes - not always - it takes so long on short sales. I've worked for 2 of the big names and I personally think it is impacted by a variety of reasons and I'll try to explain. If the seller is making his payments there is no rush for any lender to accept an offer - afterall they are getting their $ at the higher value. Another reason is because they carry the property as an asset on their books at the full value and after it is sold at a lesser value their assets drop. Finally, I think that if you are the first offer on the property they drag trying to figure out if the offer is truly a "best" ~ whereas if you are the second offer after one has been rejected then they have already established some parameters.
It is a most personal decision on your side - can you wait? Hopefully your realtor can have a conversation with the listing agent to get a good feel for what is going on with the property in regards to offers. Truly, if you can wait and hang in there w/o being impatient and of course, if you love love love the house the wait will be worth it.
Sincerely,
Celia
It is a most personal decision on your side - can you wait? Hopefully your realtor can have a conversation with the listing agent to get a good feel for what is going on with the property in regards to offers. Truly, if you can wait and hang in there w/o being impatient and of course, if you love love love the house the wait will be worth it.
Sincerely,
Celia
- Steve Roake, "Steve Roake"
- Contributions:285
Banks require short sales to be listed with a real estate agent to be sold. Whether the agent is experienced or knowledgeable in the short sale process will, in part, determine how the sale proceeds. Lenders also have a propensity to muck up the process. As long as you are educated on the risks as previously mentioned, then go for a short sale. I've seen a lot of homes that are selling for nearly half their 2006/7 highs and in my area they are typically discounted 25-30% over non-distressed sales.
- Blessed4Life4Real
- Contributions:4
Thanks, for the information
- Beth Jenkins, "MiamiBeachBeth"
- Contributions:106
No, it is a perfectly normal sale it just takes a very long time.
The risk is not having competent representation, such as a reputable realtor and attorney to protect your interests.
Beth Jenkins
South Florida Brokers
[contact info removed by moderator]
The risk is not having competent representation, such as a reputable realtor and attorney to protect your interests.
Beth Jenkins
South Florida Brokers
[contact info removed by moderator]
Is it safe to purchase a short sale ??
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